As someone new to driving, insurance companies will hit you with higher premiums. That’s because they see you as being more likely to have an accident and make a claim. However, there are ways to find discounts, and policies that can lower your insurance costs, while still getting the cover you need. Read on to find out how to get the cheapest car insurance for new drivers.
What is new driver car insurance?
There are no special policies that are only available to new drivers. You can pass your test and become a “new driver” at any age. But when many insurers refer to new drivers, they’re often thinking about young drivers (between the ages of 17 and 24, say) who have only recently passed their driving test. These drivers are typically less experienced at driving on public roads, and won’t have any driving history for insurers to use in their underwriting calculations.
Why is new driver insurance so expensive?
A couple of factors drive up the cost of new driver insurance.
Firstly, official statistics show that young, inexperienced drivers are more likely to be involved in an accident, and therefore to make a claim, than many other age groups. Insurers bump up premiums to account for the greater likelihood they’ll need to pay out for new drivers.
Secondly, new drivers won’t have had a chance to build up any years of no-claim driving that prove they’re safer drivers than the age-related statistics might suggest. This means they won’t qualify for a no-claim discount.
How much does new driver insurance cost?
It’s difficult to give a categorical answer to this. The cost of car insurance is heavily influenced by age, and you can become a new driver at any age.
What we can tell you is that, on average, young drivers (under 25) pay significantly more for their insurance than over 25s. This will at least be partly due to their lack of driving experience, which can result in a higher statistical chance of younger drivers being involved in an accident and needing to make a claim.
For example, someone aged 20 who wanted to insure a car in insurance groups 1-10 (some of the cheapest cars to insure) would face an average annual premium of £1715, according to Finder data.
A 30-year-old insuring an equivalent car would pay well under half of this, with an average premium of £654.
Source: Confused.com. Correct as of April 2024. We gathered quotes for people aged 20 and 30 driving cars in each of the 50 insurance groups, across 3 different postcodes – a cheap, average and expensive address.
What affects the cost of new driver car insurance?
There are a number of things that can make car insurance more expensive for one new driver than another. These can include:
Age – unfair as it may seem, older newly-qualified drivers are likely to pay less than those that pass their test in their teens.
Car make and model. Higher value or more powerful cars usually cost more to insure than affordable runabouts.
Where you live. If you live (and drive) in a busy urban environment, you’ll probably pay more for insurance than someone surrounded by quiet roads.
Where you park. If you’re able to park your car in a locked garage or private driveway, you may pay a few quid less than someone who has to park on the road.
Average yearly mileage. Fewer miles typically equates to lower premiums.
Logic should dictate that third party insurance is the cheapest type of policy. This is the most basic type of deal on offer and it’s the minimum level of cover you need to legally drive in the UK.
It pays out for any damage you cause to someone else’s vehicle or property. Unlike comprehensive cover, it won’t offer any financial help should your car need repairing or replacing.
However, insurance companies have clocked that younger and less experienced drivers are the main buyers of this type of policy. As a result, many insurers don’t necessarily offer cheaper premiums for third party cover.
It’s definitely worth getting quotes for third party, fire and theft and comprehensive insurance too. These might work out cheaper and offer you higher levels of protection to boot.
Finder survey: What proportion of Brits say the cost of the premium is one of the most important considerations when choosing car insurance?
Response
Yorkshire and the Humber
West Midlands
Wales
South West
South East
Scotland
Northern Ireland
North West
North East
Greater London
East of England
East Midlands
Cost of the premium
54.12%
46.96%
51.52%
56.52%
54.3%
51.32%
58.33%
51.24%
47.62%
43.52%
54.02%
43.18%
Source: Finder survey by Censuswide of 1032 Brits, December 2023
What other insurance options are there for a new driver?
If the cost of buying a traditional, annual car insurance policy makes your eyes water, there are alternatives worth taking a look at. Whether they’re right for you will depend on whether you own your own car and how often you plan to drive.
Black box car insurance. Also known as telematics insurance, this tracks how well you drive using a small device or “black box” installed in your car and adjusts your premium accordingly.
Pay-as-you-go car insurance. These policies charge you according to how much you drive. You pay a basic set rate each month or year, plus a small additional charge for each mile or hour of driving. Like telematics insurance, your insurer will usually use a black box device to record the data. But they’ll only be interested in how much you drive – not how well you drive.
Named-driver car insurance. If you’ll be driving a parent’s or sibling’s car, rather than your own, ask them to add you to their policy as a named driver. You can only do this if you aren’t the main driver of the car though.
Temporary car insurance. If you only get behind the wheel occasionally – at weekends, or during university holidays, for example – a policy that covers you every day for a full year may not be worth it. Temporary policies can insure you for a few days or weeks at a time. However, some have minimum age limits.
Can “black box” car insurance save new drivers money?
Potentially, yes. This is provided you drive carefully and safely, though.
Black box insurance is designed to give good drivers cheaper car insurance. It’s also known as telematics insurance. A small device is fitted in your car to record your driving performance. The device sends these details back to your insurer.
Safe, careful driving will be rewarded with lower premiums over time. But watch out; bad habits such as speeding could see your premium shoot up.
How long are you considered a new driver?
Insurers have no overall definition of how long they consider someone to be a “new driver” after they’ve passed their test. But once you’ve gained a year or 2 of driving experience and started to build up an insurance no-claim bonus, you should see your premiums start to drop.
This may happen faster if you passed your test when you were older, as data from the Association of British Insurers (ABI) shows that, in general, drivers aged under 25 pay higher premiums than older drivers.
Will adding a more experienced driver reduce car insurance costs for new drivers?
Just as a new driver can add themselves to a parent’s policy, if you have your own car (and therefore need your own insurance), you can add another driver to your policy as a named driver.
Whether this will save you money depends on the driver in question. Generally, adding an older driver with a track record of conviction-free and claim-free driving is likely to reduce a new driver’s car insurance premium.
That’s because insurers regard experienced drivers as lower-risk. If an insurer thinks that your car will be driven by a low-risk driver some of the time, it is likely to reduce the premium accordingly.
One word of warning. If you’re the person that will be driving the car the most, don’t be tempted to put a parent or another experienced driver as the main driver and add yourself as a named driver. This is a form of insurance fraud known as fronting.
How to compare car insurance quotes as a new driver
Pull together the information you’ll need. As well as your personal details, this will include your car registration, an estimate of your annual mileage, and details of where you’ll keep the car and what you’ll use it for (just for social use, or to commute to and from work, for example). Some insurers and price comparison sites also ask for your driving licence number, though this is usually optional.
Get quotes. Check price comparison sites and direct-only providers. Different comparison sites have different arrangements with insurers. As a result, the providers they include and the deals they offer may be slightly different. Check at least a couple to get a more complete picture. And some insurers, such as Direct Line, aren’t on comparison sites at all.
Shortlist a few providers and scrutinise the details. Compare features and cover levels as well as price. Policies have subtle differences. It could be worth paying a little more for a policy that doesn’t skimp on important cover. You can get cheap car insurance that has good benefits.
Try specialists or insurance brokers (0ptional). If you’re struggling to find affordable cover through mainstream insurers, it could be worth searching out providers that specialise in insurance for new drivers. The British Insurance Brokers Association (BIBA) has a directory of insurance brokers, so could be a good place to start.
What can new drivers do to save on their insurance?
Car insurance can be a major drain on young drivers’ wallets. While you might see yourself as a responsible road-user, insurance companies will see you as being a higher risk. That’s because younger drivers are statistically more likely to be involved in a collision.
Buy a lower-risk car. Cheaper, less-powerful cars are more likely to fall into a lower car insurance group. This typically means lower insurance premiums.
Pay annually if possible. Insurers often charge interest on monthly instalments, which means higher costs. If you can, paying an annual lump-sum will save money.
Opt for a higher excess. When you make a claim, you generally have to pay a certain amount (an excess) before the insurer starts contributing. Agreeing to a higher excess can lower your premium. Just make sure you don’t opt for such a high excess that you can’t afford it if you need to claim.
Consider a telematics policy. Having a black box in your car which monitors your speed, distance travelled and the times you drive can lower costs. Bear in mind that it can raise them too if you fall into bad driving habits.
Build a safe driving record. Drive responsibly and avoid making any claims, and you will start to earn a decent no claims discount after a year or two.
Get an additional driving qualification. Taking an advanced driving course might convince the insurance company that you’re safer on the roads and provide you with a cheaper premium.
Park in a secure location and up your car’s security. If possible, you could shave a few quid off your premiums by leaving your car in a garage overnight. Installing antitheft or other security features in the car can also help.
Don’t blindly auto-renew. Each year you should compare car insurance quotes and shop around. It could save you hundreds of pounds, particularly if you’ve had a change in your personal details, such as getting married.
Bottom line
As a new driver, insurers consider you more of a risk than experienced drivers. But this doesn’t mean you should pay over the odds for car insurance.
Even though you might not have a lot of experience on the road, you may be a safe and careful driver. If so, choosing a black box insurance policy could help to lower your premium.
Yes. To drive legally in the UK, you must have a basic third party insurance policy. Bear in mind that this will only cover you for harm you cause to other people or their cars or property. Comprehensive policies, which will cover damage to your own car too, aren’t always more expensive so it’s worth comparing all levels of cover.
No. As a learner driver, you have to have a dedicated learner driver policy. This covers you before and during your driving test. But as soon as you pass, you’ll need a new, standard car insurance policy. If you took your test in your driving instructor’s car, this won’t matter immediately, as they’ll hopefully drive you home. But if you took it in another car, you’ll either need someone who’s already insured on that car to drive you (and the car) home, or you’ll need to buy insurance on the spot to drive yourself home. It could be worth comparing car insurance quotes before you take your test. That way you will have a suitable policy lined up.
To get an insurance quote as a new driver – or indeed any driver – you’ll need to provide your personal details (name, address, age etc), your car registration, what you use the car for and where you keep it, an estimate of your annual mileage, and your driving history (any recent claims or driving convictions). Some insurers and price comparison sites will also ask for your driving licence details.
When the main driver of a car adds another driver to their policy, they are known as a “named driver“. If, as a new driver, you’ll drive your parent’s car rather than your own, you can ask them to add you to their policy. This is likely to bump up your parent’s premium due to the additional risk you pose as an inexperienced driver. However, there’s a good chance it’ll be cheaper than you taking out a standalone policy.
Usually, yes. Day insurance is a form of temporary car insurance. This lets you insure yourself on a car for as little as a day (or even a few hours), usually up to around a month. It can be a good option if you only need to borrow someone’s car every now and then. Bear in mind that you won’t be able to earn a no-claims bonus on temporary policies. In addition, many insurers have minimum age limits (over 18, for example). Some will also require you to have passed your test at least 6 months or a year ago.
If you can afford to pay the full amount up-front, then paying your premium annually will work out cheaper. That’s because insurers add interest to your monthly payments. However, paying monthly can help you spread the costs if you can’t afford to pay the full premium in one go.
If you take out your own, annual insurance policy, you’ll be able to buy the same optional extras as any other driver.
Add-ons that you might want to consider include:
Windscreen cover – to cover the cost of repairing or replacing a chipped or cracked windscreen.
Courtesy car cover – provides a replacement car while yours is in for repairs following an accident.
Key cover – in case you lose your keys or key fob, or they’re stolen.
Breakdown cover – to rescue you if your car breaks down.
Some insurance policies may include cover for some of these as standard. When you’re comparing policies, double check and make sure you’re comparing like for like.
It depends on the specific policy. Some, but not all, comprehensive policies let you drive someone else’s car on a third party basis. You typically won’t be able to drive other cars if your main insurance is third party or third party, fire and theft.
It’s possible, but not guaranteed. Advanced driving courses such as Pass Plus are intended to help new drivers boost their experience and improve their skills. Some insurers will ask about these courses as part of the quote process, and may give you a discount if you’ve taken one. Bear in mind that the saving may not be enough to cover the cost of taking the course in the first place though.
How long is a piece of string? While insurers reward claim-free driving through a no-claim bonus, every insurer’s discount works differently. It’s almost impossible to generalise how much your premium will decrease by after a year.
One thing that’s certain is that the cheapest insurer for a brand new driver may not be the cheapest insurer after a year of claim-free driving. Don’t assume that staying loyal will be the best option. As you approach your first renewal, use a price comparison site such as Finder to shop around for the best deal.
“Fronting” is when an older, more experienced driver claims to be the main driver of a car when in fact, a younger, less experienced driver is. The main driver of a car is regarded as the person that drives the car most often. Anyone that drives the car less often can be added as a named driver.
Fronting is a form of insurance fraud and is illegal in the UK. It is likely to result in any insurance claim being invalid. It could even mean your policy is cancelled entirely. You could also be fined, and even face a criminal conviction.
*Based on data provided by Consumer Intelligence Ltd, www.consumerintelligence.com (July ’24). 51% of car insurance customers could save £523.17
The offers compared on this page are chosen from a range of products we can track; we don't cover every product on the market...yet. Unless we've indicated otherwise, products are shown in no particular order or ranking. The terms "best", "top", "cheap" (and variations), aren't product ratings, although we always explain what's great about a product when we highlight it; this is subject to our terms of use. When making a big financial decision, it's wise to consider getting independent financial advice, and always consider your own financial circumstances when comparing products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
Ceri Stanaway is a researcher, writer and editor with more than 15 years’ experience, including a long stint at independent publisher Which?. She’s helped people find the best products and services, and avoid the pitfalls, across topics ranging from broadband to insurance. Outside of work, you can often find her sampling the fares in local cafes. See full bio
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